The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1887-05-13
THE r. r. INQUIRY.
Railroad Men, Cross Questions
and Crooked Answers.
WHAT WILL THE HARVEST Be?
Morosini Couldn't Find the Books
The Big Consolidation Scheme
Other Interesting Items.
Tho Pacific Investigation.

NEW YORK, May 1.-THE investiga-
ton before the Pacific railway commits
sion opened to-day, with G. P. Moro
SIM on the stand. He was of the
firm of W. E. Connor & Co, bankers
and brokers'. In 1878 to 1885 Jay Gould
and his son George were also members
Of the firm. Witness knew nothing OF
the books of the firm. II never asked
Gould where they were," said the wit
ness, "but Mr.. Gould testified on the
stand that he knew nothing about them.
Gould is
MAN OF FEW WORDS,
and 1 did not bother him about it."
Commissioner Anderson asked
Morosini: care you afraid of Mr..
Gouid?"
Il am not AFRAID Of anything, l tried
in every way in my power to find the
books, but never could. l know that
Mr.. Gould was large holder OF Union
Pacific stock which he kept in his
vault. don't know that he had made
large purchases of Kansas Pacific
stock just prior to the consolidation.
don't remember that | signed the rati-
6cation for the consolidation as q
holder of over $1,000, 900 of Kansas
Pacific stock. l owned no such stock.
They sometimes put stock in other peo-
pies hands for convenience and that
might have been the case in this
matter"
When you say they whom do you
mean?"
81 suppose Mr.. Gould "
Then, when you say them you
mean Mr.. Gould every time?"
Mr.. Gould and his friends who de-
sired it for their convenience. l signed
the ratification because | was told it was
for the mutual interest of the roads,"
RUSSELL SAGE,
who has been a banker and broker for
over twenty years, was examined as to
his books kept from 1873 10 1880 and
his clerical employment at that time.
He said: Il made my first purchase OF
stock of the Union Pacific in 1869 OF
1870, paying therefore about 26 cert; OF
81 cents for about LOCO shares. l was
requested to serve as director of the
road, because l was a large stock
holder" Sage produced record
Of his dealings in Kansas Pacific
ock and bonds from July, 1873,
to February, 1880, and promised
similar record with reference to the
st. Joseph & Western. Knew OF the
st. Louis pool in 1873. and was inter
ested in it to the extent of 50 CG0,C 20.
L did this he said, Ito increase the
value of Missouri Pacific securities.
think that | had no personal interest in
the securities, which were exchanged
for So 100000 consolidated bonds.
don't remember who owned these secu-
rites, but think tina Gould was inter
eSted in them"
NATHAN NILES, GOVERNMENT DIRECTI !
of the Union Pacific for the year 1879
swore that he considered the consolida-
ton of benefit to the Union Pacific. He
knew nothing of an arrangement by
which Jay Gould was to take consoll-
dated bonds in return for other securi-
ties. "0n subjects where I was without
information, relied strongly on the
advice of my associate, Geo. B. Smith
of Des Moincs. IN the matter of my
action regarding the consolidation
rememh 2r having no conversation with
reference - the matter save with the
government dire ctors. The government
directors had a separate organization
of which l was chairman. Mr.. Smythe
kept the minutes of the proceedings.
do not know where they are"